Brad Garlinghouse and Stuart Alderoty slam the SEC after a US court ordered the regulator to review its decision on Grayscale’s spot Bitcoin ETF application.
Ripple executives have also joined the crypto community in celebrating Grayscale’s court win over the SEC.
Grayscale Triumphs Over SEC in Spot Bitcoin ETF Case
For context, the District of Columbia Court of Appeals ruled in favor of Grayscale against the SEC yesterday. The court ordered the SEC to review the decision that saw it reject Grayscale’s application to launch a spot Bitcoin exchange-traded fund (ETF).
As expected, the market turned bullish, with the prices of different cryptos soaring. Commenting on the development, Ripple CEO Brad Garlinghouse and Chief Legal Officer (CLO) Stuart Alderoty slammed the Securities and Exchange Commission following the court’s ruling.
Notably, the Grayscale victory comes less than a month after Ripple scored a partial victory against the SEC.
Alderoty Says SEC Has Been Battered in Court
In a tweet yesterday, Alderoty said the SEC is being battered in court. Alderoty drew attention to some of the highlights of the Ripple case, where a district court bashed the SEC.
Per Alderoty, the SEC was proved wrong in the Ripple case, described as hypocritical and lacking faithful allegiance to the law. He also mentioned that the court fined the securities regulator for “discovery abuse.”
Furthermore, Alderoty referenced the Grayscale ruling, where the court described the SEC’s denial as arbitrary and capricious.
“That’s a really big deal,” he said.
The SEC is getting battered in the court. In our case it's been proven wrong, been called hypocritical, lacking faithful allegiance to the law, fined for discovery abuses and now another distinguished court saying it’s "arbitrary and capricious" – that’s a really big deal. https://t.co/RidAojtZCJ
— Stuart Alderoty (@s_alderoty) August 29, 2023
Ripple CEO Celebrates Legal Victories Against SEC
Reacting to Alderoty’s tweet, Garlinghouse said the recent victories against the SEC feels like a “Summer of Justice.”
However, he expressed disappointment that crypto-related businesses would have to resort to legal actions “to prove this SEC is out of control and consistently wrong on the facts and the law.”
While these are great outcomes… and it’s feeling like a summer of justice…
it’s sad that so many in the US crypto community have to resort to the legal process to prove this SEC is out of control and consistently WRONG on the facts and the law. https://t.co/sdZpaO4coh
— Brad Garlinghouse (@bgarlinghouse) August 29, 2023
Meanwhile, Ripple execs have consistently bashed the SEC over its crypto regulation. Alderoty, in particular, accuses the SEC of regulating the crypto space by enforcement, instead of by law.
SEC v. Ripple Case
Ripple has faced the SEC squarely in a heated legal battle lasting over two years. Although the court has issued its summary judgment, the case may still linger for another two years or more, as the SEC is set to appeal the parts of the ruling Ripple won.
As reported, the SEC wants to appeal the decision on Ripple’s programmatic sales of XRP and other distributions.